Presented below are the accounts for Accounts payable Accounts receivable Accumulated depreciation Admissions REVENUE Bonds payable Cash Cash-borrowed from bank Cash-collected from customers Cash-paid for bond investment Cash-paid for copyright Cash-paid for dividends Cash-paid for equipment Cash-paid for interest Cash-paid for land & building Cash-paid for taxes Cash-paid to employees Cash-paid to retire LT note Cash-paid to vendors Cash-received from sale of stock Common stock Copyright Depreciation expense Dividends Equipment Income taxes expense Income taxes payable Interest expense Interest payable Land Land & building held for resale LT Investments Notes payable CL Notes payable-LT Prepaid advertising Retained earnings Rink rental expense Salary expense Skate rental revenue Supplies expense Uncarned revenue Wages payable Hindman Injon December 31, 2022 1,050 4253 26,250 22,500 31,050 43,725 3,150 3,600 28,500 4,875 7,125 825 2,175 2,925 13,500 600 7,200 750 5,850 14,250 25,725 9,450 2.550 825 24,000 1,800 135 3,173 90 5,625 825 17,850 3,600 4,200 1,125 13,095 6,000 7,125 5,250 3,675 225 330 Instructions: Prepare an income statement, retained earnings statement, cash flow statement & a balance sheet for the quarter ended. December 31, 2022
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
prepare an income statement,
![Presented below are the accounts for
Accounts payable
Accounts receivable
Accumulated depreciation
Admissions revenue
Bonds payable
Buildings
Cash
Cash-borrowed
from bank
Cash collected from customers
Cash-paid for bond investment
Cash paid for copyright
Cash-paid for dividends
Cash-paid for equipment
Cash-paid for interest
Cash-paid for land & building
Cash-paid for taxes
Cash-paid to employees
Cash-paid to retire LT note
Cash- paid to vendors
Cash-received from sale of stock
Common stock
Copyright
Depreciation expense
Dividends
Equipment
Income taxes expense
Income taxes payable
Interest expense
Interest payable
Land
Land & building held for resale
LT Investments
Notes payable CL
Notes payable-LT
Prepaid advertising
Retained earnings
Rink rental expense
Salary expense
Skate rental revenue
Supplies expense
Unearned revenue
Wages payable
Hindman In on December 31, 2022
1,030
4,253
26,250
22,500
31.030
43,725
3,150
3,600
28.500
4,875
7,125
825
2,175
2,925
13.500
600
7,200
750
5.850
14,250
25,725
9,450
2.550
825
24,000
1,800
135
3,173
90
5,625
825
17,850
3,600
4,200
1,125
13,095
6.000
7,125
5.250
3,675
225
330
Instructions:
Prepare an income statement, retained earnings statement, cash flow
statement & a balance sheet for the quarter ended. December 31, 2022
360,825](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7deceb97-3ce7-4a8e-8a35-5f3a1dc2b7ea%2F732a5bd3-8515-4b2d-8387-719fb8da631f%2Fqhiwj9d_processed.jpeg&w=3840&q=75)
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 3 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)